Monday, October 09, 2017

Indian airports need to treble airport capacity in 10 years; capex to reach Rs 2.4 lakh crore

With more and more air travellers Indian airports will need to increase its airports’ capacity along with the investment in bettering them.
“The country would need to nearly treble its airports capacity (terminal building capacity) at an estimated capital expenditure of Rs 2.4 lakh crore in the next ten years, much higher than around Rs 52,000 crore incurred over the last decade, to address the growing air traffic,” ICRA said in a report on Monday.

ICRA said the airports infrastructure sector in India is increasingly getting constrained by the strong growth in traffic since FY2014.

“During the period, FY2014 to FY2017, the passenger traffic has grown by 57% while the aircraft traffic has grown by 33%, compared to moderate capacity addition,” ICRA added.

Passengers carried by domestic airlines during January to August 2017 were 754.11 lakhs as against 644.68 lakhs during the corresponding period of previous year, as per the data given by Directorate General of Civil Aviation.

“As of now Capex plans to the tune of Rs 65,000 crore have been finalised by Airports Authority of India (AAI) (Rs 17,500 crore for next five years) and by private operators (around Rs 22,000 crore for brownfield expansion in Delhi, Mumbai, Hyderabad and Bangalore; and around Rs 21,000 crore for Greenfield airports),” ICRA said.

However these funds will fall short considering the growth of passenger traffic.
09/10/17 Zee Biz
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